Cost of living is cheaper for renters |
27 2008 |
| New research from a leading money website has shown that the cost of living for those who rent is lower than the expenses associated with buying or owning a home. MoneyExpert.com conducted a study which found that the average tenant spends £133.90 per week on unavoidable commodities such as food, clothing, transport, phone and energy bills. By comparison, homeowners currently have to fork out a whopping 62 per cent more to cover those expenses, with average outgoings of £216.60 per week. Sean Gardner, director of MoneyExpert, said: "Tenants are less exposed to these factors - they don't have to remortgage; they won't suffer equity losses as house prices drop; and their per capita expenditure on basic commodities is lower than those of homeowners, too. "This may explain why the housing market is struggling to recover - people realise that renting is cheaper now and aren't prepared to run the risk of being on the property ladder." And with the threat of higher inflation and interest rates growing and the possibility of recession not being written off, the trend looks set to continue for the foreseeable future.  |
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